Monero (XMR) has been experiencing a healthy recovery just like most of its counterparts in the last 3 weeks. Its bullish momentum gained fresh resolve on Monday, leading to an impressive 39% rally from the day’s low to its high.

To put its performance into perspective, Monero traded as low as $234.10, and peaked as high as $329 on Monday. This rally marked its biggest single-day gain in recent history. Moreover, it also highlighted a multi-year peak, and the last time that XMR price action was that high was in August 2021.

This recent rally also pushed Monero deep into overbought territory. Price pulled back below $300 and had a $268 press time price tag. However, XMR still maintained bullish momentum suggesting that the latest rally triggered long term bullish optimism.

Nevertheless, the rally did demonstrate a surge in bearish expectations now that it was deeply overbought. In the last 24 hours, negative funding rates registered its highest spike observed in more than 12 months.

Open interest in XMR surged as high as $34.13 million, which was the highest level observed on a year-to-date basis. Meanwhile, daily volume surged to $581.07 million in the last 24 hours, which was the highest level observed since February 2024.

The underlying reason behind the latest Monero excitement

XMR’s bullish performance in the last 2 days was not a fluke but rather a reaction to an event. Social sentiment around Monero surged this week due to its involvement in a recent Bitcoin heist.

3,520 BTC worth roughly $330 million was recently stolen from a whale wallet. The hacker reportedly transferred the stolen funds across multiple exchanges. However, on-chain analysts tracked the thief’s digital footprint and eventually discovered that the stolen funds were then swapped for Monero.

The incident cast the spotlight on Monero for its privacy features. Meanwhile, the massive liquidity inflow from BTC to XMR triggered a bullish market response, as more demand came in.

But could this recent spotlight on XMR attract more liquidity to the cryptocurrency or is it a temporary move? Monero has so far maintained most of its recent gains, indicating that holders were not in a rush to take profits off the table. The privacy-centric narrative may continue to attract more attention and possibly boost liquidity inflows in the near term.

 

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